Berenberg raises target price on RDI

Berenberg said RDI's recent disposal activity was "transformative" as despite challenging market conditions, the firm had completed around £220.0m of disposals in the past two weeks and about £330.0m since announcing its strategic review 18 months ago.

The German bank noted that these moves had lowered retail exposure to 11.8%, lowered pro-forma loan-to-value to 30.2% and had accelerated RDI's transition toward a lower-levered, higher-growth, higher-quality business.

"With strategic progress exceeding expectations for both pricing and speed, we review our forecasts ahead of the publication of FY 2020 results, expected on 5 November," said Berenberg, which also reiterated its 'buy' rating on the stock.

The analysts added that RDI's share price was underpinned by the recent sale of a 29.4% interest to Starwood Capital at an implied price of 95.0p per share and highlighted that it still continues to see "significant upside" to current levels.